According to a new report by CNBC, October is shaping up to be another terrible month for the industry, after an already abysmal September, as auto dealers around the country have been plagued by marked drops in retail sales and customer traffic in their showrooms.
Scott Adams, the owner of a Toyota dealership in Lee’s Summit, Missouri, told CNBC: “We are definitely seeing business pull back. September was off some, but this month our car sales are down 12 percent and our truck sales are down 23 percent." The report notes that the drop in sales was most pronounced last weekend.
Another dealer in Tampa Bay, Florida said that sales this month were down 13%. Mark Scarpelli, president of Raymond Chevrolet and Kia in Antioch, Illinois stated that "Customer traffic has moderated. There is a little bit more of a pause because of the higher interest rates." He said that although sales are keeping pace with the prior year, people are taking longer to buy.
Recall that in September, the average new car loan jumped $724 year-over-year to $30,958 in Q2 2018, while used vehicle loan amounts increased $520 to reach $19,708, both records.
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12 comments:
They should have saved some of those $ from the people they ripped off for the year.
cnn fire alarm going off while talking about bombs being sent to the clintons lol.
MAGA
Thanks to all of the people who buy new cars every couple of years so that those of us who can afford them used know that the bugs are worked out of them and which models to avoid altogether.
They have priced us out of the market! Some of the new car and truck prices are as much as a new home! Who wants to deal with those high car payments when our wages are low and job security is always in question?
Try lowering your prices and the interest rates....share some of your profits! Let's see some posted P&L sheets!!!!
October 24, 2018 at 11:36 AM AMEN!!!!!
Dealerships, make good offers to customers.
Don't be like Preston Hyundai who charge $50 for an oil change where $30 is labor, clearly marked on the bill.
Mr Bob
Certified used, one owner with history used is the best way...
They (biggies) did this to themselves. I too 1113am just wait until those that buy buy buy, have to turn their cars in with low mileage. I have reaped the bennies for 20 years on used vehicles. Very little depreciation when I leave the lot. Just a little bit of work/research and the car market can be your oyster.
EVEN here on the Eastern Shore!!!!!!!!!!!!!!!!!
I'm a big believer in buying new if you can. I take very good care of my vehicles, so usually any bugs are found while still under warranty. When you buy used, you have no way of knowing how well the person before you treated that car. I also keep mine forever, so I think its worth the extra for brand new. Have an 09 Santa Fe I was able to pass down to my daughter with 99,000 miles on it that still runs great. Bought it new and took care of it, so I know it will last her years because I know it was cared for. Bought a new Honda and fully expect to pass that down to her someday too.
No one can afford the prices anymore, I have medical bills killing my credit.And the interest rates are too high, and no one wants to deal with the sketchy financing or 6+years of payments they offer..drop those prices and take some peoples credit into consideration especially us who had a freak emergency and are overrun with medical bills.
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